Effect of Risk Management on Profitability of Banks in Nigeria

This study assessed the effect of risk management on profitability of banks in Nigeria and suggested measures towards mitigating their effects on the banking sector in Nigeria taking a case of fourteen selected banks. The study covered a 13-year period from 2008 to 2020. The data for the study were obtained from secondary sources including the annual reports and financial statements of the selected banks and Central Bank of Nigeria (CBN) Statistical bulletin. The study used the Panel Data Regression model. The results revealed that loan loss provision was positive and significant, loan to deposit ratio was positive and insignificant, while both capital adequacy and non-performing loans were negatively insignificant to profitability. As such, commercial banks should embark upon upgrading their risk management strategies.